Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2016, Padre transferred equipment to Sonora for $84,000. The equipment had cost $133,000 originally but had a $43,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no salvage value. Consolidated financial statements for 2018 currently are being prepared. What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Power Music owns five music stores, where it sells music, instruments, and supplies. In addition, it rents instruments. At the end of last year, the new accounts showed that although the business as a whole was profitable, the Fifth Avenue store had shown a substantial loss. The income statement for the Fifth Avenue store for last month follows:

Additional computations:

^a These costs would be saved if the store were closed.

^b The rent would be saved if the store were closed.

^c Assessed annually on the basis of average inventory on hand each month.

^d 8.5% of cost of departmental equipment. The equipment has no salvage value, and Power Music would incur no costs in scrapping it.

^eAllocated on the basis of store sales as a fraction of total company sales. Management estimates that 5% of these costs allocated to the Fifth Avenue store could be saved if the store were closed.

^f Based on average inventory quantity multiplied by the company's borrowing rate for three-month loans.

Analysis of these results has led management to consider closing the Fifth Avenue store. Members of the management team agree that keeping the Fifth Avenue store open is not essential to maintaining good customer relations and supporting the rest of the company's business. In other words, eliminating the Fifth Avenue store is not expected to affect the amount of business done by the other stores.

Required:

a. Calculate the cost savings in closing the Fifth Avenue store.

[The following information applies to the questions displayed below.] In 2018, Sheryl is claimed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances?  Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Leave no answer blank. Enter zero if applicable.)

a. She received $5,400 from a part-time job. This was her only source of income. She is 16 years old at year-end.

b. She received $5,400 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end.

c. She received $5,400 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student.

d. She received $5,400 of qualified dividend income. This is her only source of income. She is 16 years old at year-end.

2018 Tax Rate Schedules

Individuals

Schedule X-Single

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

Schedule Z-Head of Household

Schedule Y-2-Married Filing Separately

Tax Rates for Net Capital Gains and Qualified Dividends

*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose).

Estates and Trusts

Write a memo by answering following questions.

Overview:

Identify a current topic impacting financial statements or audits to analyze and communicate in writing.

Your analysis will be graded on the following:

Ability to identify a topic/event that is relevant to financial statements and/or auditing today.

• Consider looking at websites like the FASB (recently issued tab), PCAOB, IAASB, ASB, Big 4 Firms, AICPA, Accountingtoday.com, etc. to identify a topic.
• Professional journals, see page 53 in your textbook, these publications are available through the campus library.  

Analysis of the issue/event.         

• What’s going on?
• What’s the issue?
• Are there two sides, if so, consider the pros and cons of each.
• What are your thoughts on the issue?
• Are there any relevant timelines?

Written summary of your analysis.

• Maximum of 3 pages
• Business memo format: Purpose, Analysis, Conclusion (these sections must be included at a minimum, use headers and sub-headers to organize your paper)
• No spelling/grammatical errors
• Clearly and concisely communicate the materials

1. An Auditor may decide to make use of a specialist in obtaining sufficient appropriate audit evidence in certain circumstances that are material to the fair presentation of the financial statements. What guidance is provided by current auditing standards (check PCAOB website) regarding the types of matters that the auditor may decide require him or her to consider using the work of a specialist? Please identify the source and copy the appropriate paragraph(s) at below.

explain the difference between activities and financial statements of service businesses and merchandising businesses.

This is a business law question.

Explain how environmental laws regulate the use of toxic substances and the disposal of hazardous wastes?

Need solution:

HSL Company produces rugs. The following cost information from last year is available:

Total fixed costs $ 43,200 Total variable costs $ 520,800 Units sold 6,200 units · Contribution margin ratio 30%

The company is considering a new, highly Automated machine to replace some of the labor force. In addition, the company will adjust the selling price to reflect the change in demand. Assume the following: Decrease in variable cost per unit by 3% Annual depreciation expense of the new machine $8,000 Contribution margin ratio increases to 40%

To achieve the same level of net income as last year, how many units of rugs the company must sell? (Round the answer to the nearest unit).

A. 4,256 units

B. 4,463 units

C. 6,002 units

D. 6,621 units

E. None of the above

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year-end. The 2017 balance sheet disclosed the following:

During 2018, credit sales were $1,750,000, cash collections from customers $1,830,000, and $35,000 in accounts receivable were written off. In addition, $3,000 was collected from a customer whose account was written off in 2017. An aging of accounts receivable at December 31, 2018, reveals the following:

Required:

1. Prepare summary journal entries to account for the 2018 write-offs and the collection of the receivable previously written off.
2. Prepare the year-end adjusting entry for bad debts according to each of the following situations:

1. Bad debt expense is estimated to be 3% of credit sales for the year.
2. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year-end balance in accounts receivable.
3. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

3. For situations (a)–(c) in requirement 2 above, what would be the net amount of accounts receivable reported in the 2018 balance sheet?

Please answer question #3, thank you!

Garrett Kelly. Corporation's identified their current production capacity to range from 6,500 units to 22,000 units. when it produced and sold 12,000 units, its average costs per unit are as follows:

1) If 15,000 units are produced, the total amount of Prime Costs incurred is closest to: ______
2) Determine the Conversion Costs for 11,000 units.
3) Determine the Total Product Costs for 12,000 units.
4) Detemine Total Period Costs when 12,000 units are sold.

I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.”

Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for this year are given below:

The company had an overall return on investment (ROI) of 16.00% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $2,501,500. The cost and revenue characteristics of the new product line per year would be:

Required:

1. Compute the Office Products Division’s ROI for this year.

2. Compute the Office Products Division’s ROI for the new product line by itself.

3. Compute the Office Products Division’s ROI for next year assuming that it performs the same as this year and adds the new product line.

4. If you were in Dell Havasi’s position, would you accept or reject the new product line?

5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product line?

6. Suppose that the company’s minimum required rate of return on operating assets is 13% and that performance is evaluated using residual income.

a. Compute the Office Products Division’s residual income for this year.

b. Compute the Office Products Division’s residual income for the new product line by itself.

c. Compute the Office Products Division’s residual income for next year assuming that it performs the same as this year and adds the new product line.

d. Using the residual income approach, if you were in Dell Havasi’s position, would you accept or reject the new product line?

Dwight Donovan, the president of Benson Enterprises, is considering two investment opportunities. Because of limited resources, he will be able to invest in only one of them. Project A is to purchase a machine that will enable factory automation; the machine is expected to have a useful life of three years and no salvage value. Project B supports a training program that will improve the skills of employees operating the current equipment. Initial cash expenditures for Project A are $119,000 and for Project B are $44,000. The annual expected cash inflows are $47,012 for Project A and $18,319 for Project B. Both investments are expected to provide cash flow benefits for the next three years. Benson Enterprises’ cost of capital is 6 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Compute the net present value of each project. Which project should be adopted based on the net present value approach? Compute the approximate internal rate of return of each project. Which one should be adopted based on the internal rate of return approach?

ABC Manufacturing Inc. ends the month with two jobs still in progress. Job 5 has​ $10,000 of​ materials, $2,000 of direct labor and​ $8,000 of manufacturing overhead allocated. Job 6 was​ $30,000 of​ materials, $2,000 of direct labor and​ $10,000 of manufacturing overhead allocated. The cost of goods sold for the month was​ $40,000 and of that​ 30% was overhead. There were no finished goods in stock as the month ends. If the manufacturing overhead is underallocated by​ $10,000, which of the following choices would be the correct way to prorate​ it, assuming the proration is based on the allocated overhead in the ending balances of​ work-in-process, finished​ goods, and cost of goods​ sold? (Round any allocation percentages to one decimal​ place, X.X%.)

A. Job 6 should be allocated another​ $6,000 of cost

B. Job 5 should be allocated another​ $6,000 of cost

C. Cost of goods sold should be reduced by​ $4,000

D. Cost of goods sold should be increased by​ $4,000

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniors—home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow:

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, considers last year’s net operating income of $43,800 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program.

The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided.

Required:

1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

1-b. Should the Housekeeping program be discontinued? yes or no?

2-a. Prepare a properly formatted segmented income statement.

2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? yes or no?

Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow:

Additional information about the company follows:

1. Hubs require $30 in direct materials per unit, and Sprockets require $15.

2. The direct labor wage rate is $14 per hour.

3. Hubs require special equipment and are more complex to manufacture than Sprockets.

4. The ABC system has the following activity cost pools:

Required:

1. Compute the activity rate for each activity cost pool.

2. Determine the unit product cost of each product according to the ABC system.